Reddit Inc. (NYSE:RDDT) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Wall Street sentiment is constructive: Reddit has an average analyst rating of “Moderate Buy” from 30 covering firms, with 18 buy ratings and 12 hold ratings. The average 12-month price target is $230.75.
• Recent results topped expectations: Reddit reported quarterly EPS of $1.01, beating consensus estimates of $0.62, while revenue rose 69.1% year over year to $663.41 million. Analysts now expect full-year EPS of 4.83.
• Insiders have been selling shares: COO Jennifer L. Wong and CTO Christopher Brian Slowe both sold stock recently, and insiders have sold 241,000 shares worth about $39.3 million over the last 90 days. Insiders still own about 28.48% of the company.

Reddit Inc. (NYSE:RDDT - Get Free Report) has been assigned an average rating of "Moderate Buy" from the thirty research firms that are covering the stock, Marketbeat.com reports. Twelve equities research analysts have rated the stock with a hold rating and eighteen have assigned a buy rating to the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $230.75.

A number of research analysts have recently issued reports on RDDT shares. Wall Street Zen lowered Reddit from a "buy" rating to a "hold" rating in a research report on Sunday, May 10th. Jefferies Financial Group decreased their target price on Reddit from $285.00 to $250.00 and set a "buy" rating on the stock in a research report on Tuesday, March 10th. Weiss Ratings reiterated a "hold (c)" rating on shares of Reddit in a research report on Friday, May 8th. The Goldman Sachs Group reiterated a "neutral" rating and set a $200.00 target price on shares of Reddit in a research report on Friday, May 1st. Finally, Wells Fargo & Company increased their target price on Reddit from $149.00 to $176.00 and gave the company an "equal weight" rating in a research report on Friday, May 1st.

Insider Activity at Reddit

In related news, COO Jennifer L. Wong sold 39,167 shares of the stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $161.47, for a total value of $6,324,295.49. Following the completion of the transaction, the chief operating officer directly owned 1,088,451 shares of the company's stock, valued at approximately $175,752,182.97. This represents a 3.47% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Christopher Brian Slowe sold 15,500 shares of the stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $150.67, for a total value of $2,335,385.00. Following the completion of the transaction, the chief technology officer directly owned 38,413 shares of the company's stock, valued at approximately $5,787,686.71. This represents a 28.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 241,000 shares of company stock valued at $39,303,645. 28.48% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in RDDT. NewEdge Advisors LLC raised its stake in Reddit by 143.3% in the 1st quarter. NewEdge Advisors LLC now owns 7,982 shares of the company's stock valued at $837,000 after purchasing an additional 4,701 shares during the last quarter. Empowered Funds LLC acquired a new position in Reddit in the 1st quarter valued at $213,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Reddit by 106.3% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 216,960 shares of the company's stock valued at $22,759,000 after purchasing an additional 111,780 shares during the last quarter. Focus Partners Wealth raised its stake in Reddit by 40.8% in the 1st quarter. Focus Partners Wealth now owns 10,224 shares of the company's stock valued at $1,073,000 after purchasing an additional 2,965 shares during the last quarter. Finally, Geneos Wealth Management Inc. increased its stake in shares of Reddit by 344.6% in the 1st quarter. Geneos Wealth Management Inc. now owns 369 shares of the company's stock worth $39,000 after acquiring an additional 286 shares during the last quarter.

Reddit Price Performance

Shares of NYSE:RDDT opened at $165.24 on Wednesday. Reddit has a 1 year low of $119.27 and a 1 year high of $282.95. The firm has a market capitalization of $31.81 billion, a price-to-earnings ratio of 47.21 and a beta of 1.91. The business's 50 day moving average price is $162.05 and its 200-day moving average price is $174.58.

Reddit (NYSE:RDDT - Get Free Report) last announced its earnings results on Thursday, April 30th. The company reported $1.01 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.62 by $0.39. Reddit had a return on equity of 25.48% and a net margin of 28.60%.The firm had revenue of $663.41 million for the quarter, compared to analyst estimates of $607.74 million. During the same quarter last year, the firm posted $0.13 EPS. The business's revenue was up 69.1% on a year-over-year basis. On average, sell-side analysts expect that Reddit will post 4.83 earnings per share for the current year.

Reddit Company Profile

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called "subreddits," each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.

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